In a statement, the company said the process has been completed to get the HSBC bank guarantee from Gabriel Capital Ltd, a privately-owned Indonesian family-controlled entity based in Singapore.
Gabriel has subscribed to $200 million worth of KPAY preferred stock, convertible to common stock at $1.80 per share, and when each tranche is drawn, the company will issue Gabriel a proportionate number of shares.
The bank guarantee will be issued to China Construction Bank Indonesia for PT Kinerja Pay Indonesia, a wholly-owned subsidiary.
The delay has been due to administration, having to adjust the amount of the initial HSBC guarantee dollar amount to match the initial credit facility provided by China Construction Bank.
In addition to Gabriel Capital, several other investment groups are also planning to send major bank guarantee swift messages to China Construction Bank on KinerjaPay’s behalf.
The bank has notified KinerjaPay that once it draws down on the first $22.5 million, it will arrange in a short period of time, to increase the line to match the bank guarantees that will be delivered to fulfill the $200 million private placement.
"We are being approached by several groups to invest on the favorable terms that have been announced,” said KinerjaPay CEO Edwin Ng. “Gabriel will most likely be the first investor, but we will take further investments using this unique structure. We expect to close and draw down the first tranche over the next week once one of these guarantees are received."
Jakarta-based KinerjaPay is a micropayments and microloans business offering digital payments and an e-wallet system.
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